Employment status and FCA Regulation

Self-employed or employee?

FCA regulation may have an impact on the employment status of individuals such that those who are ostensibly self-employed could be considered employees. This was the finding of an Employment Tribunal in the case ofJohnson-Caswell v MJB (Partnership) Ltd (Oct 2011) where an IFA was subject to the directions, instructions and training requirements of his FCA-regulated principal. This degree of control was a relevant factor in determining that the individual had employee status. This could have wide-reaching implications for businesses which rely on the self-employed model, such as a number of hedge funds.